Acquisition Financing for Development Sites
Quick answer
Kismet Kapital structures acquisition financing for development sites at 60–75% LTV, typically closing in 40–70 days. Lender focus on sponsor track record, GC strength, fixed-price contracts, contingencies, and exit underwriting.
- Product
- Acquisition Financing
- Asset Class
- Development
- Typical Leverage
- 60–75% LTV
- Typical Close
- 40–70 days
- Term
- 5–10 years (stabilized) / 1–3 years (transitional)
- Recourse
- Non-recourse standard for stabilized; selective recourse for transitional
Overview
Ground-up development capital is the most structured area of CRE finance — combining senior construction debt, mezzanine, preferred equity, and JV equity. Acquisition financing covers the senior layer of capital used to purchase income-producing CRE — sourced through banks, life companies, agencies, CMBS, debt funds, and private credit depending on profile. For development sites, acquisition proceeds are sized against lender focus on sponsor track record, gc strength, fixed-price contracts, contingencies, and exit underwriting. sub-debt and preferred equity routinely fill the gap between senior ltc and sponsor co-invest.
Why sponsors use Kismet Kapital for development acquisition capital
development transactions are typically capitalized with Construction, Mezzanine, Preferred Equity, JV Equity. Kismet Kapital identifies which of those structures the current lender market will actually fund for your business plan, then runs a competitive process across the desks pricing development risk today.
Terms at a glance
- 60–75% LTV typical proceeds for acquisition on development sites.
- Executions generally close in 40–70 days.
- Fixed or floating depending on hold period and prepayment flexibility.
- Common structures: Construction, Mezzanine, Preferred Equity, JV Equity.
- Stabilized multifamily and industrial
- Value-add retail and office
Key facts
Kismet Kapital typically closes acquisition financing on development sites in 40–70 days.
Acquisition Financing for development sites generally size to 60–75% LTV.
Development capital stacks commonly include Construction, Mezzanine, Preferred Equity, JV Equity.
Frequently asked questions
What leverage is available on acquisition financing for development sites?
Acquisition Financing for development sites typically size to 60–75% LTV, with the exact proceeds driven by in-place income, business plan, and sponsor experience.
How long does a acquisition loan on development take to close?
Most development acquisition executions close in 40–70 days from signed term sheet.
How do lenders underwrite development sites?
Lender focus on sponsor track record, GC strength, fixed-price contracts, contingencies, and exit underwriting. Sub-debt and preferred equity routinely fill the gap between senior LTC and sponsor co-invest.
What capital structures work best for development sites?
Development Sites are typically capitalized with Construction, Mezzanine, Preferred Equity, JV Equity. Kismet Kapital engineers the mix that maximizes proceeds without breaking the business plan.
When is acquisition the right product for an development deal?
Senior debt for the acquisition of stabilized and transitional commercial real estate. It fits development transactions such as stabilized multifamily and industrial and value-add retail and office.
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